Corner Bowls Road & Dyer Place - Aucor
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Arcadia Two (2) Light Industrial Facilities with Retail Component
East London GLA – ± 1,418m² (Seller Supplied)
Corner Bowls Road & Dyer Place
Thursday, 20 February 2020 @ 12h00
Houghton Golf Club – Osborn Road, Houghton, Johannesburg
John Hislop | 083 265 6867 | JohnH@aucor.com
Draft Version 3: 22 January 2020 NJvV
Multi-Industrial Facility in Prime Location – Arcadia, East London
Index
Disclaimer, Auction Information and Terms & Conditions Page 3
Property Images Page 4
Executive Summary & Key Investment Highlights Page 6
General Information Page 7
Locality Information Page 9
Property Description Page 11
Projected Annual Income Summary Page 14
Projected Gross Annual Income Page 15
Rent Roll Page 16
Lease Summaries Page 17
Rates Statement Page 18
Zoning Information Page 19
Surveyor General Diagrams Page 22
/AucorProperty www.aucorproperty.co.za 2
Multi-Industrial Facility in Prime Location – Arcadia, East London
Disclaimer, Auction Information and
Terms & Conditions
Disclaimer
Whilst all reasonable care has been taken to provide accurate information, neither Aucor Corporate (Pty)
Ltd T/A Aucor Property nor the Seller/s guarantee the correctness of the information provided herein and
neither will be held liable for any direct or indirect damages or loss, of whatsoever nature, suffered by any
person as a result of errors or omissions in the information provided, whether due to negligence or otherwise
of Aucor Corporate (Pty) Ltd T/A Aucor Property or the Seller/s or any other person.
________________________________________________________________________________________________________
Auction Information
Deposit 5% of the bid price
Commission 10% plus 15% VAT thereon of the bid price
Confirmation period 7 Business days
Rules of auction and conditions of sale are available at www.aucorproperty.co.za/
________________________________________________________________________________________________________
Terms & Conditions
R50 000 refundable deposit (strictly bank guaranteed cheque or cash transfer only). Bidders must provide
original proof of identity and residence on registration. No cash will be accepted at the auction. No
exceptions. All bids are exclusive of VAT. Aucor Property may bid up to reserve on behalf of the sellers.
Subject to change without notification. Auctioneer: Pieter Geldenhuys.
/AucorProperty www.aucorproperty.co.za 3
Multi-Industrial Facility in Prime Location – Arcadia, East London
Property Images
Aerial Images
Boundary lines are not to scale and are
drawn for illustrative purposes only.
East London CBD
/AucorProperty www.aucorproperty.co.za 4
Multi-Industrial Facility in Prime Location – Arcadia, East London
Property Images
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Multi-Industrial Facility in Prime Location – Arcadia, East London
Executive Summary &
Key Investment Highlights
Street Address: Corner Bowls Road & Dyer Place - Arcadia, East London
GPS Coordinates: -33.0069, 27.9113
Registered Land Size: 2,279m²
Zoning: "Business Zone 3" - See zoning confirmation attached to this brochure.
Assessment Rates: R12,296.99 / month (excluding consumption charges and city levies)
See from page 12 for full details
The property comprises two (2) distinct, stand-alone industrial
Accommodation:
buildings. Both buildings are single-storey with the first featuring a
trapezium-shaped footprint and the second a predominantly square
footprint. Area Description Approx GLA (m²)
Primary Building
Office Component 250
Warehouse Component 475
Retail Component 230
Approx. Total Gross Lettable Area: Subtotal: Primary Building GLA 955
Secondary Building
Workshop 463
Total Gross Lettable Area 1 418
Notes:
Gross Lettable Areas are as supplied by the Seller.
The property is fully tenanted by two (2) tenants in terms of ongoing
Occupation:
lease agreements. See from page 14 for details.
Prime location in close proximity to the East London CBD.
Fully tenanted income generating investment opportunity.
National tenant (Ellies) to sign a long-term lease upon successful sale.
Key Investment Highlights: Located in a prominent industrial node of East London, just off the R72
(Valley Road).
Highly accessible location with ease of access to the N2 highway
(further north) via the nearby R72.
An offer to purchase the standalone warehouse building was submitted to the Seller by the current Tenant. Such
offer is subject to the property being suitably subdivided (for the Tenants account and administration).
By bidding on this property, the purchaser acknowledges that he has acquainted himself with the extent and
the nature of the property he is buying, and that he accepts the property as such.
/AucorProperty www.aucorproperty.co.za 6
Multi-Industrial Facility in Prime Location – Arcadia, East London
General Information
Street Address Corner Bowls Road & Dyer Place - Arcadia, East London
GPS Coordinates -33.0069, 27.9113
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Title Deed Information
Title Deed Number T4841/2010
Registered Owner Ellies Properties (Pty) Ltd
Title Deed Description Erf 16159, East London
Registered Land Size 2,279m²
Title Deed Conditions A copy of the title deed is on hand and will be made available
upon request thereof.
Servitudes The erf is subject to a servitude of right of way and use of road in
favour of Erf 16155 East London and Erf 16158 East London as per
S.G. Diagram No. 234/1955.
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Municipality Information
Municipality Buffalo City Metropolitan Municipality
Rates Excluding consumption charges and city levies - based on the
Tax Invoice for the November 2019 billing period. See a copy
attached to this brochure for these and other charges.
Municipal Rates 2019 / 2020 2019 / 20 Annual 2019 / 2020 Monthly
Exclusion Rebate
Valuation Category Tariff Rates Rates (Annual ÷12)
Business &
R 5 080 000 N/A N/A 0,0290480 R 147 563,88 R 12 296,99
Commercial
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/AucorProperty www.aucorproperty.co.za 7
Multi-Industrial Facility in Prime Location – Arcadia, East London
General Information
Zoning Information
Zoning "Business Zone 3" - See the zoning confirmation attached to this
brochure
Permitted Uses (per scheme*) 'Commercial premises, place of worship, funeral parlour, public
garage, adult shop, mortuary, place of entertainment, escort
agency' / 'General Industrial and/or storage purposes' - based
on Title Deed.
Annexure Number/Consent Use Not applicable
Height Three (3) storeys
Floor Area Ratio 3,0/6,837m²
Coverage 100%/2,279m² or 85%/1,937.15m² - based on Title Deed
Density Not applicable
Building Lines 0m along all boundaries / 1m² - based on Title Deed
Parking Requirements Business (incl. office use) - 6 bays/100m²
Manufacturing - 1 bay/100m²
Warehousing - 1 bay/100m²
Dairies, Bakeries and Laundries - 1 bay/100m²
Storage Yards - 1 bay/100m²
Loading 20% of the floor area or 25% of the area of the erf (whichever is
the lesser)
*Buffalo City Zoning Scheme Regulations, 2007 - A copy of the scheme is on hand and will be made available upon
request.
/AucorProperty www.aucorproperty.co.za 8
Multi-Industrial Facility in Prime Location – Arcadia, East London
Locality Information
Macro Locality
The site is situated in an established industrial node known as Arcadia, which is situated just north of East London’s
CBD. East London is a city located on the south-east coast of South Africa in the Eastern Cape and hosts the
country’s only river port. According to the 2011 census, over 755,000 people reside in the metropolitan area. The
subject property is serviced by a number of primary and secondary roads with the nearby R72 providing access
to the N2 national Highway, which links East London to Port Elizabeth and Durban. With the property in close
proximity to the CBD, all modern amenities and services are available in the immediate surrounds.
GPS coordinates for the sites are as follows: -33.0069, 27.9113
Southernwood Woodmead
East London
CBD
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe
/AucorProperty www.aucorproperty.co.za 9
Multi-Industrial Facility in Prime Location – Arcadia, East London
Locality
Locality
Information Information
Micro Locality
Absa Stadium
East London
standard bank logo
Municipality
Buffalo City
Stadium
East London
CBD
Buffalo Harbour
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe
Quigney Beach
/AucorProperty www.aucorproperty.co.za 10Multi-Industrial Facility in Prime Location – Arcadia, East London
Property
Locality
Information Description
Approximate Boundaries
N
Right of Way Servitude in favour of Erven 16155 & 16158
Image Data: Chief Surveyor General (CSG) Spatial Data
/AucorProperty www.aucorproperty.co.za 11Multi-Industrial Facility in Prime Location – Arcadia, East London
Property Description
Accommodation The property comprises two (2) distinct, stand-alone industrial buildings. Both
buildings are single-storey with the first featuring a trapezium-shaped footprint and
the second a predominantly square footprint.
The primary trapezium-shaped building, located on the corner of Bowls Road and
Dyer Place, is tenanted by the renowned electrical manufacturer and distributor
known as Ellies. The building is purposefully configured to their specifications and
requirements and hosts a retail (showroom) and office section with a warehouse
spanning the western extent of the building. The retail section offers open floor
spans with two (2) office sections, both providing access to the warehouse. It
includes various solid and drywalled offices, boardrooms, store- and filing rooms,
kitchens and multiple ablution facilities. The warehouse component offers open
spans of warehouse space with an approximate eave height of 3.8m, fitted with
three (3) roller shutter gates, one of which provides access (via a currently
unutilized enclosed extension) to the secondary building.
The secondary building, accessible from Dyer Place, is purposefully configured as a
predominantly open span workshop building with an excellent eave height of
±3.7m-6m. A temporary (drywalled) manager’s office with open mezzanine first
floor, utilized as additional storage, has been erected by the current tenants. In
addition, the building offers two (2) roller shutter doors of varying size and one large
steel sliding gate.
An offer to purchase the standalone warehouse building was submitted to the Seller by the current Tenant. Such offer is subject
to the property being suitably subdivided (for the Tenants account and administration). It is understood that such process has
already been initiated, with the application currently lying for comment and/or objection with the municipality. It is advised that
a prospective purchaser contact the local town planner to confirm the stage of completion of this process.
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Additional features The building(s) boasts the following additional features:
• Various roller shutter doors fitted to each building;
• Excellent eave heights ranging between 3.7m-6m;
• Quality safety and security systems including CCTV cameras, motion
detection beams, external spotlights, alarm & access control system(s), fire
extinguishers;
• Wheelchair-friendly ramp to the main building’s entrance;
• Airconditioning throughout the primary building;
• Additional safety features such as steel bars, trellidoors and/or steel mesh
boxes fitted to windows and doors;
• Generator (ownership and inclusion in the sale to be confirmed);
• Solar panels erected on the roof of the primary building.
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/AucorProperty www.aucorproperty.co.za 12Multi-Industrial Facility in Prime Location – Arcadia, East London
Property Description
Construction The primary building is constructed of a combination of rendered and painted
walls, as well as painted structural brick walls supported by a steel superstructure.
The saw-tooth roof is predominantly constructed of asbestos and fitted with various
translucent panels for additional natural lighting.
The secondary building features a steel superstructure with some rendered and
painted brick walls along the surface, mostly further constructed of asbestos
extending from the roof.
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Fixtures and Finishes Each of the buildings and respective sub-sections have been finished according to
tenant specifications and requirements. It includes a combination of ceramic tiled,
carpeted and concrete floors with internal portioning being configured
predominantly by way of dry walling allowing for simple reconfiguration of the
sections as and when required.
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Utilities Utilities are supplied by the Buffalo City Metropolitan Municipality. It is understood
that water is included in the rental paid to Ellies by the tenant in the secondary
building, whereas electricity is separately metered for the two buildings and
recovered on a monthly basis with the rental invoiced/charged.
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Gross Lettable Areas Area Description Approx GLA (m²)
Primary Building
Office Component 250
Warehouse Component 475
Retail Component 230
Subtotal: Primary Building GLA 955
Secondary Building
Workshop 463
Total Gross Lettable Area 1 418
Notes:
Gross Lettable Areas are as supplied by the Seller.
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Parking Designated parking bays are provided in front of the primary building (±7 bays).
Additional street front parking is available along Bowls Road and the servitude
road (Dyer Place), respectively.
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Occupation The property is multi-let. See from page 14 for details.
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Condition The properties are regarded to be in a generally good condition with ongoing
repairs and maintenance required. We have not undertaken a structural survey of
the buildings nor have we arranged for tests or inspections of the service
installations, but these appear to be in working order.
By bidding on this property, the purchaser acknowledges that he has acquainted himself with the
extent and the nature of the property he is buying and that he accepts the property as such.
/AucorProperty www.aucorproperty.co.za 13Multi-Industrial Facility in Prime Location – Arcadia, East London
Projected Annual Income – Summary
BASIC RENT
Unit Item / Tenant Start Date Expiry Date Esc Basic Rent Area Let Total
Primary Building
Office R 50,00 250 R 152 437,50
Warehouse Ellies Electronics (Pty) Ltd 2020/02/01 2025/01/31 6,5% R 45,00 475 R 260 668,13
Retail R 50,00 230 R 140 242,50
955 R 553 348,13
Secondary Building
Workshop T&T Repairs & Towing 2017/01/01 2021/12/31 10% R 34,50 463 R 198 052,80
463 R 198 052,80
Potential Gross Annual Income R 751 400,93
Notes/Assumptions
1.The Basic rent and the escalation rate are as extracted from the draft lease supplied by the Seller.
2. Salient terms of the lease, such as the lease start date are as estimated base on the period in which the property is expected to transfer to the
new owner, at which point the lease is set to commence.
2. All rental information presented above is exclusive of VAT.
3. Rental Information excludes balances brought forward, deposit charges and similar once-off items billed during this period.
4. Tenancy and escalation information for the tenant occupying the secondary building is based on Seller supplied information and verified against
the relevantly executed lease agreement.
Special Note - The rental information in this brochure is not intended to constitute specific advice nor to substitute for a due diligence exercise, and
Date: 22
accordingly should not be relied upon to make a purchase decision. Prospective purchasers should make their own enquiries and investigation to
January 2020
confirm pertinent information and forecasts, and should further seek appropriate independent professional advice in relation thereto from suitably
E & OE
qualified professionals to complete their own due diligence in relation to the Property.
/AucorProperty www.aucorproperty.co.za 14BASIC RENT
Unit Item / Tenant Start Date Expiry Date Esc Basic Rent Area Let May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Total
Primary Building
Office R 50,00 250 R 12 500,00 R 12 500,00 R 12 500,00 R 12 500,00 R 12 500,00 R 12 500,00 R 12 500,00 R 12 500,00 R 12 500,00 R 13 312,50 R 13 312,50 R 13 312,50 R 152 437,50
Warehouse Ellies Electronics (Pty) Ltd 2020/02/01 2025/01/31 6,5% R 45,00 475 R 21 375,00 R 21 375,00 R 21 375,00 R 21 375,00 R 21 375,00 R 21 375,00 R 21 375,00 R 21 375,00 R 21 375,00 R 22 764,38 R 22 764,38 R 22 764,38 R 260 668,13
Retail R 50,00 230 R 11 500,00 R 11 500,00 R 11 500,00 R 11 500,00 R 11 500,00 R 11 500,00 R 11 500,00 R 11 500,00 R 11 500,00 R 12 247,50 R 12 247,50 R 12 247,50 R 140 242,50
955 R 45 375,00 R 45 375,00 R 45 375,00 R 45 375,00 R 45 375,00 R 45 375,00 R 45 375,00 R 45 375,00 R 45 375,00 R 48 324,38 R 48 324,38 R 48 324,38 R 553 348,13
Secondary Building
Workshop T&T Repairs & Towing 2017/01/01 2021/12/31 10% R 34,50 463 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 17 569,20 R 17 569,20 R 17 569,20 R 17 569,20 R 198 052,80
463 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 15 972,00 R 17 569,20 R 17 569,20 R 17 569,20 R 17 569,20 R 198 052,80
Potential Gross Annual Income R 61 347,00 R 61 347,00 R 61 347,00 R 61 347,00 R 61 347,00 R 61 347,00 R 61 347,00 R 61 347,00 R 62 944,20 R 65 893,58 R 65 893,58 R 65 893,58 R 751 400,93
/AucorProperty
Notes/Assumptions
1.The Basic rent and the escalation rate are as extracted from the draft lease supplied by the Seller.
2. Salient terms of the lease, such as the lease start date are as estimated base on the period in which the property is expected to transfer to the new owner, at which point the lease is set to commence.
2. All rental information presented above is exclusive of VAT.
3. Rental Information excludes balances brought forward, deposit charges and similar once-off items billed during this period.
4. Tenancy and escalation information for the tenant occupying the secondary building is based on Seller supplied information and verified against the relevantly executed lease agreement.
Special Note - The rental information in this brochure is not intended to constitute specific advice nor to substitute for a due diligence exercise, and accordingly should not be relied upon to make a purchase decision. Prospective purchasers should make their own enquiries and investigation
Date: 2020/01/22 E & OE
to confirm pertinent information and forecasts, and should further seek appropriate independent professional advice in relation thereto from suitably qualified professionals to complete their own due diligence in relation to the Property.
Multi-Industrial Facility in Prime Location – Arcadia, East London
www.aucorproperty.co.za
Projected Gross Annual Income
15Multi-Industrial Facility in Prime Location – Arcadia, East London
Rent Roll
Area Basic Rental
Unit Item / Tenant Gross Rate /m²
Let (Monthly)
Primary Building Ellies Electronics (Pty) Ltd 955 R 45 375,00 R 47,51
Secondary Building T&T Repairs & Towing 463 R 15 972,00 R 34,50
1 418 R 61 347,00
Monthly Gross Income billed R 61 347,00
Gross Annual Income (potential) R 736 164,00
Estimated operating expenses R 147 232,80
Estimated Nett Annual Income (potential) R 588 931,20
Notes/Assumptions
1. Based on Seller supplied information as at December 2019.
2. All rental information presented above is exclusive of VAT.
3. Rental Information excludes balances brought forward, interest on arrears, deposit charges and similar once-off items billed
during this period.
4. Note the Gross rate / m ² for the Ellies building is an average gross rental of the three different sections. For the detailed
breakdown of each section, refer to the Projected Gross Annual Income section.
Special Note - The rental information in this brochure is not intended to constitute specific advice nor to substitute for a due
diligence exercise, and accordingly should not be relied upon to make a purchase decision. Prospective purchasers should
make their own enquiries and investigation to confirm pertinent information and forecasts, and should further seek appropriate
independent professional advice in relation thereto from suitably qualified professionals to complete their own due diligence in
relation to the Property.
/AucorProperty www.aucorproperty.co.za 16Multi-Industrial Facility in Prime Location – Arcadia, East London
Lease Summaries
These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease
documents, copies of which are on hand and will be made available to bona fide prospective purchasers upon request.
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Lease 1
Tenant Ellies Electronics (Pty) Ltd
Rentable Area Office, Warehouse & Retail - ±955m² (Seller supplied)
Start Date 1 February 2020
Expiry Date 31 January 2025
Renewal Period Five (5) years
Escalation Rate 6.5% per annum
Monthly Rental (excl VAT)* Office
From To Area (m²) Basic Rental Gross Rate / m²
01/02/2020 31/01/2021 R 12 500 R 50,00
01/02/2021 31/01/2022 R 13 313 R 53,25
01/02/2022 31/01/2023 250 R 14 178 R 56,71
01/02/2023 31/01/2024 R 15 099 R 60,40
01/02/2024 31/01/2025 R 16 081 R 64,32
Warehouse
From To Area (m²) Basic Rental Gross Rate / m²
01/02/2020 31/01/2021 R 21 375 R 45,00
01/02/2021 31/01/2022 R 22 764 R 47,93
01/02/2022 31/01/2023 475 R 24 244 R 51,04
01/02/2023 31/01/2024 R 25 820 R 54,36
01/02/2024 31/01/2025 R 27 498 R 57,89
Retail
From To Area (m²) Basic Rental Gross Rate / m²
01/02/2020 31/01/2021 R 11 500 R 50,00
01/02/2021 31/01/2022 R 12 248 R 53,25
01/02/2022 31/01/2023 230 R 13 044 R 56,71
01/02/2023 31/01/2024 R 13 891 R 60,40
01/02/2024 31/01/2025 R 14 794 R 64,32
Additional Charges The tenant will be liable for the following additional charges:
o All consumption charges
o Their share of municipal charges including Rates and Taxes
o Internal maintenance (only for premises occupied)
o Plumbing, electrical installations, glass etc. (only for the portion of
the premises occupied)
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Lease 2
Tenant T&T Transport t/a T&T Repairs & Towing
Rentable Area Workshop – ±463m² (Seller Supplied)
Start Date 1 January 2017
Expiry Date 31 December 2021
Renewal Period Option to renew – period not specified
Escalation Rate 10% per annum.
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2020/01/01 2020/12/31 R 15 972,00 R 34,50
463
2021/01/01 2021/12/31 R 17 569,20 R 37,95
Other Charges Clause 5 – “Rates only include electricity as per meter installed”
Key Clauses Clause 8 – ‘Use of leased premises’ to do any mechanical repairs.
/AucorProperty www.aucorproperty.co.za 17Multi-Industrial Facility in Prime Location – Arcadia, East London
Rates Statement
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Zoning Certificate
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Zoning Certificate
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Zoning Certificate
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Surveyor General Diagram
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Surveyor General Diagram
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